FNET Future

RNS Number:2324S
Future Network PLC
9 October 2000


PRESS INFORMATION




9 October 2000





             FUTURE FRANCE SA IDENTIFIES ACCOUNTING IRREGULARITY



The Board of The Future Network plc (LSE: FNET) announces that it has retained
Deloitte & Touche, Accountants, to investigate an accounting irregularity
identified by Future France SA, the Group's French subsidiary.  The
investigation is being conducted in an expedited form, but as yet it is not
completed.

The preliminary results of Deloitte & Touche's investigations indicate that
newsstand sales revenues for Future France in each of the financial years
ended 31 December 1998 and 31 December 1999, and during the financial period
from 1 January 2000 to date, have been overstated.

Whilst the investigation is ongoing and the precise overstatement has not yet
been determined, the Directors current understanding is that the amount by
which sales have been overstated is in the region of FF35 million (#3.2m
calculated using the exchange rate in force as at close of business on Friday
6 October 2000).  The Directors believe that the full amount of that
overstatement will impact operating profit in the financial years ended 31
December 1998, 31 December 1999 and in the financial year to date, however the
allocation of that amount between financial years is not yet fully
ascertained.

The investigations to date have also indicated that the current cash balances
of Future France SA are unaffected, no cash outflows will result from this
accounting error, and the accounting irregularities are confined to Future
France.


The historic financial performance and contribution of Future France SA in
relation to the overall results of The Future Network plc, before making any
adjustment for the overstated newsstand sales, is shown below. The allocation
of the error between periods has not yet been ascertained.


                                     Future      The Future     Percentage
                                     France SA   Network plc    contribution
Six months ended 30 June 2000
Revenue                              #11m        #111m          10%
Operating profit before amortisation (#0.1m)     #2m            (5%)
of intangible assets


Year ended 31 December 1999
Revenue                              #22m        #174m          13%
Operating profit before amortisation #2m         #23m           9%
of intangible assets


Year ended 31 December 1998
Revenue                              #16m        #80m           20%
Operating profit  before             #2m         #11m           18%
amortisation of intangible assets



                                     Ends

For further information, please contact:



The Future Network plc

Greg Ingham, Chief Executive                  01225 442244

Ian Linkins, Finance Director                 01225 442244



Hogarth Partnership

James Longfield,                              0207 357 9477

Future (LSE:FNET)
Historical Stock Chart
From Jun 2024 to Jul 2024

Future (LSE:FNET)
Historical Stock Chart
From Jul 2023 to Jul 2024